Ringgit Slips Against Dollar as US Yields Rise Amid Fed Uncertainty

The Ringgit has opened lower against the US dollar on Tuesday amid elevated US Treasury yields and uncertainty over the Federal Reserve's interest rate outlook, said an analyst.

The local currency eased to 4.0300/0350 against the greenback from last Friday's close of 4.0230/0270.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the rising US Treasury yields to expectations that the Fed could maintain a cautious stance on interest rates at the upcoming Federal Open Market Committee meeting on September 15-16.

The 30-year US Treasury bond yield has been rising persistently to 5.25 per cent, following Fed chairman Kevin Warsh's speech at the Jackson Hole Symposium where he indicated that inflation remains high while the labour market remains healthy.